529 college savings plan
Flexible vehicle for education funding and much more.
What is a 529 plan?
A 529 plan is a tax-advantaged savings plan intended to encourage families to set aside money for future education costs.
Earnings in a 529 grow tax-deferred, and withdrawals are tax-free when used for qualified education expenses like tuition, books, and certain room and board.
Who can use a 529?
Parents & Guardians – Save for your children’s college or K-12 tuition.
Grandparents & Relatives – Contribute to a loved one’s education in a tax-efficient way.
High-Income Earners – Benefit from tax-free growth even if you don’t qualify for other education-related tax breaks.
Any Individual – You can even open a 529 for yourself, either for your education or to shift to another beneficiary.
Advanced Planning Concepts
529s can be much more than just a college savings tool:
Roth Conversion – You can convert funds from a 529 plan to a Roth IRA for the same beneficiary, tax-free and penalty-free, thanks to the SECURE 2.0 Act.
Generational Wealth Transfer – Contribute up to the IRS gifting limit (or front-load 5 years’ worth at once) to pass wealth efficiently.
Estate Planning – For families looking to reduce estate taxes or shift assets into a tax-advantaged vehicle, 529s offer strategic advantages.
Student Loan Repayment – Recent rules allow limited 529 withdrawals to help pay down student loans.
Changing Beneficiaries – If one child doesn’t use all the funds, you can transfer the account to another family member without penalties.
Graduate School & Beyond – Funds aren’t limited to undergraduate education; they can be used for K-12, graduate programs, trade schools, and certain apprenticeships.